Make all your mistakes early in life. He says the more tough lessons you learn early on, the fewer errors you make later. A common mistake of all young investors is to be too trusting with brokers, analysts, and newsletters who are trying to sell you bad stocks.Always make your living doing something you enjoy. This way, you devote your full intensity to it which is required for success over the long-term.
Be intellectually competitive. This involves doing constant research on subjects that make you money. The trick, he says, in plowing through such data is to be able to sense a major change coming in a situation before anyone else.
Make good decisions even with incomplete information. In the real world, he argues, investors never have all the data they need before they put their money at risk. You will never have all the information you need. What matters is what you do with the information you have. Do your homework and focus on the facts that matter most in any investing situation.
Always trust your intuition. For him, intuition is more than just a hunch. He says intuition resembles a hidden supercomputer in the mind that you’re not even aware is there. It can help you do the right thing at the right time if you give it a chance. In fact, over time your own trading experience will help develop your intuition so that major pitfalls can be avoided.
Don’t make small investments. You only have so much time and energy so when you put your money in play. So, if you’re going to put money at risk, make sure the reward is high enough to justify it.
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Make all your mistakes early in life. He says the more tough lessons you learn early on, the fewer errors you make later. A common mistake of all young investors is to be too trusting with brokers, analysts, and newsletters who are trying to sell you bad stocks.10 Points for Traders
- Understand the psychology of the trade: never believe you are smarter than the markets as the markets will always win.
- Acquire the knowledge on how the markets truly work then test and retest your ideas and concepts until you feel confident.
- Develop a working knowledge of what types of entry and exit orders work best.
- Understand how to manage risk by employing the use of options strategies.
- Pick a strategy that matches the market conditions.
- Manage the strategy. You should always know what your next reaction point will be and what prompts you to take it.
- Watch what moves. To be successful, you have to become a media hound.
- Integrate fundamental, technical, and sentiment analysis into a real world trading approach that enables you to best understand market performance.
- Specialize in one sector and one strategy at a time.
- Give yourself the winner’s edge by always continuing to actively pursue the learning process.
Cutting your losses and going with the trend – emotionally
There is the famous old adage that as a trader you should cut your losses short and let your winners run.
The best are able to do this.
BUT it’s a very easy thing to intellectualise and yet quite another thing to execute in the real world. After all if it was so easy there wouldn’t be all the writers, books, blogs, tweets, coaches, mentors etc in the trading world. They would be obsolete.
HOWEVER IT ALSO APPLIES TO LIFE AWAY FROM THE CHARTS.
The ego and subconscious are often key adversaries to us gaining flow in our lives and achieving abundance. This is true in both trading and normal life.
If you are unwilling to accept you are wrong and move on it is all too easy to not keep your losses small. (more…)